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Market regulator Sebi today revoked restrictions on Dr Agarwal's Eye Hospital, its directors and promoters after the Chennai-based firm became compliant with the stipulated 25% minimum public shareholding level.
Accordingly, the Securities and Exchange Board of India (Sebi) said that it did not not propose to initiate further action against the company.
"Hereby revoke the directions issued vide the interim order dated June 4, 2013 against the company, Dr Agarwal's Eye Hospital Ltd, its directors, promoters and promoter group, with immediate effect," the regulator said.
The Securities and Exchange Board of India (Sebi) had issued norms wherein all listed private sector companies were directed to achieve minimum public shareholding by June 3.
Through an order dated June 4, the Sebi had slapped various restrictions on 105 non-compliant companies including Dr Agarwal's Eye Hospital, their promoters and directors for not meeting the public holding requirement within deadline.
Public shareholding in the company on June 4 was 21.77%.
The Sebi froze the voting rights and corporate benefits of promoters/directors of these companies and barred them from holding any new position on boards of listed firms, among others.
It had also warned the firms of further actions including levy of monetary penalties, initiation of criminal proceedings, restricting the trading activities of related stocks and other possible directions.
Dr Agarwal's Eye Hospital later submitted to Sebi that it completed the Employees Stock Purchase Scheme (ESPS) by issuing two lakh shares to the employees as result of which its promoter holding has reduced to 74.90% and public shareholders now hold 25.10% in the company as required under the norms.
As Dr Agarwal's Eye Hospital had delayed in complying with the norms, Sebi in its order has warned and advised the firm "to ensure compliance with all the applicable laws and regulations administered by Sebi that govern its activities in the securities market".
